Breaking up with your broker doesn’t mean breaking up with your insurance. In most cases you keep the same policy, carrier, coverage and price, and just change who’s in your corner.
The Letter That Does It
The switch is made with a broker of record letter, or an agent of record letter on personal policies. It’s a short signed note telling the insurance company that a new agency now represents you. Many carriers use the standard ACORD 36 form for it, one of the many industry forms that keep insurance paperwork moving.
From there the carrier lets your current broker know, and there’s usually a short waiting period of around a week. Then the new broker takes over service, claims help and your renewal. Your coverage never pauses, because you’re not canceling anything.
A Few Wrinkles
- Some carriers only switch at renewal. Ask before you assume it’s immediate.
- Captive policies usually can’t move. If your insurer only sells through its own agents, an independent broker generally can’t take the policy over, and switching means shopping for a new one.
- Your old broker may call. Totally normal. Stick with your decision.
It doesn’t cost you anything either. There’s no fee, and the premium doesn’t change, since the carrier pays whoever your broker is. That’s also why a broker costs nothing.
Most of the broker of record letters our team handles come from business owners who feel like their policy has been on autopilot for years. If that sounds familiar and you run one of the businesses we insure in Colorado, give us a call.